Work on the well to date has proceeded smoothly with no operational problems in the field. Fellows anticipates that the well and the coring data will be completed on schedule. The characterization of the reservoir from the coring tests being performed by Fellows will allow for detailed pre-completion stimulation studies to be performed in order to increase the chances for successful completion and production of methane.
Fellows recently entered into a Purchase and Option Agreement with Quaneco, L.L.C., an Oklahoma limited liability company, to acquire a 65% working interest in the Overthrust Project, comprising over 183,000 acres of oil, gas and coal bed methane leases in northeastern Utah and southwestern Wyoming. Fellows will test the three identified coal seams that run through much of the area. Quaneco previously drilled seven exploratory wells that identified multiple coal seams of Tertiary and Cretaceous age that appear to be prospective for coal bed methane. Some of these coals are of similar age and depositional condition to other productive coal bed methane fields.
Management hopes these transactions will bring additional value to the shareholders of Fellows Energy. There is no guarantee that the agreement with Quaneco or the leases that Fellows has recently acquired will increase the value of its shares of common stock, or that Fellows will acquire rights to explore and operate any other such projects, or that in the event that it acquires rights to explore and operate other such projects, that these actions will be successful or increase the value of Fellows' common stock.
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